Audit 5440

Section III – Federal Award Findings and Questioned Costs Finding 2023-001 Federal Direct Student Loan Enrollment Reporting Program: Federal Direct Students Loans CFDA Number: 84.268 Federal Agency: U.S. Department of Education Federal Award Identification Number: P268K230248 Federal Award Year: June 30, 2023 Criteria: 34 CFR 685.309(b) states that upon receipt of an enrollment report from the Secretary, a school must update all information included in the report and return the report to the Secretary in the manner and format prescribed by the Secretary and within the timeframe prescribed by the Secretary. Unless it expects to submit its next updated enrollment report to the Secretary within the next 60 days, a school must notify the Secretary within 30 days after the date the school discovers that a loan under Title IV of the Act was made to or on behalf of a student who was enrolled or accepted for enrollment at the school, and the student has ceased to be enrolled on at least a half-time basis or failed to enroll on at least a half-time basis for the period for which the loan was intended. Additionally, institutions are required to accurately report the student’s Campus-Level and Program-Level enrollment data. Condition: The College did not submit accurate and timely notification to the National Student Loan Data System (NSLDS) of student status changes and program-level enrollment data. Questioned Costs: Not applicable. Context: A sample of 40 students was selected from a population of 336 student enrollment status changes. There were 28 instances in which the student’s status change was reported after the 60 day requirement. In addition, it was noted that for one student that the campus and program-level record information was not in agreement with NSLDS. The sample was not considered statistically valid. Effect: The accuracy of Title IV student loan records depends heavily on the accuracy of the enrollment information reported by the schools. If an institution does not review, update, and verify student enrollment statuses, effective dates of the enrollment status, and the anticipated completion dates, then the Title IV student loan records will be inaccurate, which impacts student loan repayments. Cause: The College was notified of a data breach at the Clearinghouse in May 2023 so the College intentionally delayed its submission until the breach had been resolved. The file was submitted timely by the College to the Clearinghouse but delayed by the Clearinghouse to NSLDS. The misreporting of one student’s campus and program-level record information related to the late reporting of the student’s enrollment status to the Registrar’s office. Recommendation: The College should review and update its processes and controls to ensure student status changes are reported timely and accurately to NSLDS. Management’s Response: The College acknowledges the finding and has reviewed its policies and procedures to ensure enrollment status information is reported accurately to NSLDS.

Section III – Federal Award Findings and Questioned Costs Finding 2023-001 Federal Direct Student Loan Enrollment Reporting Program: Federal Direct Students Loans CFDA Number: 84.268 Federal Agency: U.S. Department of Education Federal Award Identification Number: P268K230248 Federal Award Year: June 30, 2023 Criteria: 34 CFR 685.309(b) states that upon receipt of an enrollment report from the Secretary, a school must update all information included in the report and return the report to the Secretary in the manner and format prescribed by the Secretary and within the timeframe prescribed by the Secretary. Unless it expects to submit its next updated enrollment report to the Secretary within the next 60 days, a school must notify the Secretary within 30 days after the date the school discovers that a loan under Title IV of the Act was made to or on behalf of a student who was enrolled or accepted for enrollment at the school, and the student has ceased to be enrolled on at least a half-time basis or failed to enroll on at least a half-time basis for the period for which the loan was intended. Additionally, institutions are required to accurately report the student’s Campus-Level and Program-Level enrollment data. Condition: The College did not submit accurate and timely notification to the National Student Loan Data System (NSLDS) of student status changes and program-level enrollment data. Questioned Costs: Not applicable. Context: A sample of 40 students was selected from a population of 336 student enrollment status changes. There were 28 instances in which the student’s status change was reported after the 60 day requirement. In addition, it was noted that for one student that the campus and program-level record information was not in agreement with NSLDS. The sample was not considered statistically valid. Effect: The accuracy of Title IV student loan records depends heavily on the accuracy of the enrollment information reported by the schools. If an institution does not review, update, and verify student enrollment statuses, effective dates of the enrollment status, and the anticipated completion dates, then the Title IV student loan records will be inaccurate, which impacts student loan repayments. Cause: The College was notified of a data breach at the Clearinghouse in May 2023 so the College intentionally delayed its submission until the breach had been resolved. The file was submitted timely by the College to the Clearinghouse but delayed by the Clearinghouse to NSLDS. The misreporting of one student’s campus and program-level record information related to the late reporting of the student’s enrollment status to the Registrar’s office. Recommendation: The College should review and update its processes and controls to ensure student status changes are reported timely and accurately to NSLDS. Management’s Response: The College acknowledges the finding and has reviewed its policies and procedures to ensure enrollment status information is reported accurately to NSLDS.